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Google refines Android strategy ahead of iPhone app download tsunami

Google?s launch of Android gave Apple?s iPhone what industry experts believe was much-needed competition. Now, with the iPhone coming to Verizon?s network Feb. 10, Google has launched initiatives meant to help it compete with the Apple device and the App Store.

Google has launched the Android Market Web site, which makes it easy to discover new apps through a bigger interface. Users can send applications directly to their Android device and share favorites with friends. The move is undoubtedly part of Google?s strategy to increase distribution and discoverability of its apps right when the App Store is about to get a big push with the flood of Verizon subscribers who will start downloading soon.

?I am going to speculate,? said Mark Beccue, senior analyst of consumer mobility at ABI Research, Oyster Bay, NY. ?Google has been very open about saying it wants to spread usage of the Android OS to get more people using Google search and it has not really focused a lot on apps.

?Its philosophy was evident by the way it rolled things out,? he said. ?The original marketplace was sparse, there weren?t a lot of discovery tools and the payment mechanisms were criticized.

?It worked hard on developing the operating system and maybe now Google is coming to a point where it is realizing that apps are critical to the sustained growth of Android.?

Discoverability
The rollout of the Android Market Web site is undoubtedly Google?s way of focusing more on apps. Google is focusing now even further on what will make Android continue on its path to success.

Google is awfully smart about many things and as we all know, the company is extremely sophisticated in search and helping consumers discover things on the Web.

?I think Google will apply its best thinking for app discoverability,? Mr. Beccue said. ?It will all come down to an algorithm for discoverability.

?Discoverability has to change and Google is in a good position to do that,? he said.

The discoverability options for applications in both Apple's App Store and in the Android Market prior to this new Web site are just plain-old bad.

Apple's App Store uses a recommendation engine. It recommends similar apps to consumers.

If Joe has downloaded a weather app, why recommend a similar app? What are the chances Joe will be using two weather apps? The recommendation engines need to be more sophisticated.

Additionally, with a broad subject like applications, top lists are not going to cut it, Mr. Beccue said.

?Google understands that the form factor of the app ? this single-purpose application ? is important going forward,? Mr. Beccue said. ?They understand they need to focus on this more and they are looking at how to improve.?

Upping the competition
Making the discoverability process easier and more user-friendly is obviously a well-thought-out and strategic move on the part of Google.

Although Google is available on all of the four major U.S. wireless carriers, its application store only has about 100,000 applications.

Its cross-carrier reach has not been able to help it beat Apple?s more than 300,000 applications and 10 billion downloads.

With the iPhone coming to Verizon, that means more consumers will be flooding the App Store, pushing developers to develop even more for the platform. Marketers follow consumers.

Improving discoverability will help Google push developers to develop for Android.

Once again, Apple is pushing the market to innovate.

?The move for Verizon to sell iPhone, for Android to launch a social-friendly Web store, Microsoft re-establishing themselves in mobile, and some of the expected announcements at Mobile World Congress in about 10 days are major industry developments that will further accelerate the growth of the market we all live in today,? said Kunal Gupta, CEO of Polar Mobile, Toronto.

?Consumers benefit,? he said. ?Publishers benefit. Advertisers benefit.

?With more smartphones available across more carriers with even better distribution of mobile apps on traditional mediums such as desktop Web, publishers will start to recognize they need to be everywhere as consumers are going to be everywhere. Furthermore, advertisers benefit by having a new channel which to engage consumers with their brand, content and value proposition.?

Android Market site
Previously, users could only access Android Market directly from their device.

Now Android users can visit http://market.android.com and browse the store via a large screen, giving publishers a bigger canvas through which to sell their applications.

The online store helps apps get noticed, which is also good for the advertisers running in-app ads and hoping to achieve maximum reach.

Another thing that Google is doing is carrier billing. In other words, carrier billing is the payment mechanism within its app store.

Mr. Beccue believes that carrier billing is a really great idea and that most consumers would like to do that.

Google may actually have an advantage with carrier billing because recently Apple changed its rules for developers.

Apple is prohibiting application developers such as Sony from selling content via iPhone and iPad applications unless the transactions go through Apple?s system. Apple makes 30 percent on all of these transactions.

?Apple?s recent changes in how publishers can leverage their distribution channels will no doubt stir up the market as it is hard for publishers to invest in an ecosystem where the rules are changing without notice,? Polar Mobile?s Mr. Gupta said.

?It is difficult to forecast revenue and provide commitments to advertisers on reach when all of their time is going towards ensuring their mobile products work,? he said.

Final take
Google gives developers a taste of what is new for Android

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